8 TH AUGUST 2017 NEWSLETTER_EN04/JULY/2017

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1 8 TH AUGUST 2017 NEWSLETTER_EN04/JULY/2017

E Commerce of Sri Lanka (ECCSL) successfully conducted a seminar titled Sri Lanka - The Next Asian Mr. Tung Lai-Margue said Sri Lanka was readmitted to the GSP+ scheme in May this year.

2 Sri Lanka - The Next Asian Economic Miracle? Resetting Economic Development Priorities. Prime Minister says GSP+ is the linchpin to exports and job creation The European Chamber of In his remarks EU Ambassador H.E Commerce of Sri Lanka (ECCSL) successfully conducted a seminar titled Sri Lanka - The Next Asian Mr. Tung Lai-Margue said Sri Lanka was readmitted to the GSP+ scheme in May this year. This has Economic Miracle? Resetting the potential to significantly boost Economic Development Priorities. Sri Lanka s exports to the EU. In The event was organized in addition to GSP+ the EU is also partnership with the Delegation of the European Union (EU) to Sri Lanka and the Maldives. funding a series of activities under its EUR 8 million Trade-related Assistance Project, which includes the development of a National The conference opened with Export Strategy for Sri Lanka. remarks by Mr. Arnold Perera Vice President of ECCSL who spoke on Sri Lanka s potential to become the In order for Sri Lanka to maximize the benefits of GSP+, it needs to next Asian economic miracle. diversity its exports within existing Commenting on the work done by sectors as well as to entirely new the Chamber, Mr. Perera and non-traditional markets in the mentioned efforts made by the EU ECCSL to upgrade Sri Lanka s The Chief Guest Prime Minister OECD country risk classifications Hon. Ranil Wickremasinghe, which were downgraded in stressed the importance of having a He said that the ECCL had also business friendly environment for made an effort to promote Public exporters and went on to say that Private Partnership (PPP) there would be a new policy initiatives through the European statement in the 2018 budget to Investment Bank (EIB) which had stimulate the private sector expressed interest in working with engagement in the economy. the local private sector. He went on to say that the government would enact a new Foreign Exchange Bill and highlighted the importance of enhancing productivity, competitiveness and maintaining a dialogue between the private and banking sectors to ensure funding. Ministers Malik Samarawickrema and Mangala Samarweera also graced the occasion and spoke on the government s economic development efforts. Minister Samrawickrama said that he would consider facilitating a trade adjustment package to local industrialists to upgrade machinery and introduce modern technology so that companies could be more competitive. Minister Samaraweera said government is committed to providing a stable policy regime with a simpler, clear and more transparent tax policy to attract investment climate. The event was well attended by Ambassadors and diplomatic staff from EU Delegation Office and the missions of Germany, France, Slovenia, UK, US, and the Netherlands, senior government officials, researchers and corporate executives. Orion City was the main sponsor of the event with Coats and Walkers CML - the Gold and Silver sponsors respectively.

4 Speakers at Sri Lanka- The Next Asian Economic Miracle? As the organizer, The European Chamber of Commerce of Sri Lanka (ECCSL) would like to gratitude for the Main Sponsor (Orion City), Gold Sponsor (Coats Thread Exports (Pvt) Ltd), Sliver Sponsor (Walkers CML Group) and Banner Sponsors. And also we convey our sincere thanks to all the speakers, invitees and other participants who attended this national event.

The 3 rd EU Sri Lanka Investor Dialogue for the year 2017 The European Chamber of Commerce of Sri Lanka (ECCSL) has had the pleasure of initiating the EU SRI LANKA INVESTOR DIALOGUE in partnership

The Dialogue brings together senior official of the various government departments who are directly involved in the regulation of business and industries, facilitation of import and export and

Trade Delegation to Benelux Countries (October 2017) The ECCSL has partnered with the BENELUX BUSINESS COUNCIL of the Ceylon Chamber of Commerce to arrange an outbound Trade mission to BENELUX

5 The 3 rd EU Sri Lanka Investor Dialogue for the year 2017 The European Chamber of Commerce of Sri Lanka (ECCSL) has had the pleasure of initiating the EU SRI LANKA INVESTOR DIALOGUE in partnership with the Board of Investment of Sri Lanka (BOI) with an objective of looking into the regulatory and policy issued faced by the investors in Sri Lanka. The Dialogue brings together senior official of the various government departments who are directly involved in the regulation of business and industries, facilitation of import and export and Customs Department. We are happy to announce that 2017 s 3rd Sri Lanka- EU Dialogue was very productive and resulted in active participation from both the government and diplomatic sectors. Trade Delegation to Benelux Countries (October 2017) The ECCSL has partnered with the BENELUX BUSINESS COUNCIL of the Ceylon Chamber of Commerce to arrange an outbound Trade mission to BENELUX countries. It is hoped that the trade mission will enable the Sri Lankan companies to identify potential business opportunities in BENELUX countries. The trade mission is undertaken at a time when EU provides access to 6500 products from Sri Lanka without duty under GSP+ facility. Partnerships (PPP) funding for Sri Lankan business entities. The members of the trade delegation will have the privilege of meeting EIB officials at EIB Headquarters in Luxembourg and it would provide them with a firsthand opportunity to gather funding mechanisms/ strategies available from EIB. The ECCSL in partnership with BENELUX BUSINESS COUNCIL hope that trade mission will take off the ground in the month of October ECCSL has also made an initiative to partner with European Investment Bank (EIB) in Luxembourg for Public Private

6 Explore Europe Belgium Belgium became independent from the Netherlands in 1830; it was occupied by Germany during World Wars I and II. The country prospered in the past half century as a modern, technologically advanced European state and member of NATO and the EU. Its capital, Brussels, is home to numerous international organizations including the EU and NATO. IMPORTANT FACTS Conventional long form: Population Capital: Government type: GDP - real growth rate: Exports: Exports commodities: Exports - partners: Imports: Imports commodities: Imports - partners: Kingdom of Belgium 11,409,077 (July 2016 est.) Brussels federal parliamentary democracy under a constitutional monarchy 1.4% (2016 est.) $250.8 billion (2016 est.) chemicals, machinery and equipment, finished diamonds, metals and metal products, foodstuffs Germany 16.9%, France 15.5%, Netherlands 11.4%, UK 8.8%, US 6%, Italy 5% (2015) $251.7 billion (2016 est.) raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products Netherlands 16.7%, Germany 12.7%, France 9.6%, US 8.7%, UK 5.1%, Ireland 4.7%, China 4.3% (2015) ECONOMIC OVERVIEW Belgium s central geographic location and highly developed transport network have helped develop a well-diversified economy, with a broad mix of transport, services, manufacturing, and high tech. Industry is concentrated mainly in the more heavily-populated region of Flanders in the north. Belgium is 100% reliant on foreign sources of fossil fuels, and the planned closure of its seven nuclear plants by 2025 should increase its dependence on foreign energy. Its role as a regional logistical hub makes its economy vulnerable to shifts in foreign demand, particularly with EU trading partners. Roughly three-quarters of Belgium's trade is with other EU countries. Belgium s GDP grew by 1.4% in 2016, unemployment at yearend was 8.4%, and the budget deficit was 2.7% of GDP. The economy largely recovered from the March 2016 terrorist attacks, which mainly impacted the Brussels region

7 tourist and hospitality industry. Prime Minister Charles MICHEL's center-right government has pledged to further reduce the deficit in response to EU pressure to decrease Belgium's high public debt of about 107% of GDP, but such efforts could also dampen economic growth. In addition to restrained public spending, low wage growth and higher inflation promise to curtail a more robust recovery in private consumption. The government has pledged to pursue a reform program to improve Belgium s competitiveness, including changes to tax policy, labor market rules, and welfare benefits. These changes have generally made Belgian wages more competitive regionally, but risk worsening tensions with trade unions and triggering extended strikes. BILATERAL TRADE RELATIONSHIP BETWEEN SRI LANKA AND BELGIUM Belgium is the 3rd largest destination of Sri Lankan exports among EU countries and the 6th largest destination of Sri Lanka s exports to the world. In 2016, Sri Lanka exports to Belgium was USD 338 million and Sri Lankan export to Denmark amounted USD 70 million. Sri Lanka has enjoyed a favorable balance of trade with Belgium in recent years. Sri Lankan export to Denmark are mainly Apparel, Tobacco and Clothes, Rubber while Danish export to Sri Lanka is Diamonds, Organic chemicals, and Pharmaceutical products. Exports to Belgium Imports from Belgium 36% 34% 22% 32% 30% 46%

Top ten Export products Product Product label Sri Lanka's exports to Belgium (USD Thousand) code Value in 2012 Value in 2013 Value in 2014 Value in 2015 Value in 2016 'TOTAL All products 464,358

8 Top ten Export products Product Product label Sri Lanka's exports to Belgium (USD Thousand) code Value in 2012 Value in 2013 Value in 2014 Value in 2015 Value in 2016 'TOTAL All products 464, , , , ,187 '61 Articles of apparel and clothing accessories, 92,381 12, , , ,617 knitted or crocheted '62 Articles of apparel and clothing accessories, not 25,631 35,305 51,179 48,307 55,585 knitted or crocheted '24 Tobacco and manufactured tobacco substitutes 33,510 26,406 24,918 20,863 46,181 '40 Rubber and articles thereof 47,336 44,986 42,881 37,599 44,356 '71 Natural or cultured pearls, precious or semiprecious 240,783 20, ,540 36,716 20,284 stones, precious metals, metals clad... '09 Coffee, tea, maté and spices 10,536 11,901 11,958 9,322 10,976 '76 Aluminium and articles thereof ,111 '96 Miscellaneous manufactured articles 1,688 1,394 1,505 1,334 1,866 '03 Fish and crustaceans, molluscs and other 2,472 6,609 4,450 1,059 1,206 aquatic invertebrates '08 Edible fruit and nuts; peel of citrus fruit or melons 839 1,271 2,548 2,198 1,103 Top ten Import products Product code Product label Sri Lanka's imports from Belgium Value in 2014 Value in 2015 Value in 2016 'TOTAL All products 103, ,165 69,752 '71 Natural or cultured pearls, precious or semi-precious 32,653 14,932 17,873 stones, precious metals, metals clad... '30 Pharmaceutical products 5,009 5,539 6,629 '29 Organic chemicals 21,503 10,353 6,566 '84 Machinery, mechanical appliances, nuclear reactors, 6,961 8,148 5,634 boilers; parts thereof '24 Tobacco and manufactured tobacco substitutes 5,888 4,479 3,367 '39 Plastics and articles thereof 5,545 4,113 2,822 '85 Electrical machinery and equipment and parts thereof; 2,102 2,345 2,520 sound recorders and reproducers, television... '40 Rubber and articles thereof 2,458 2,614 2,225 '04 Dairy produce; birds' eggs; natural honey; edible products 1,077 1,814 1,593 of animal origin, not elsewhere... '21 Miscellaneous edible preparations 1,400 1,478 1,555

Upcoming ECCSL Events Business Opportunities- Partner Searching Diamond Aircraft produces a full range of high quality certified all composite aircraft in state of the art

The company uses proprietary lead-free jet-fuel piston engines, made by Austro Engine GmbH of Austria, a company of the Diamond Aircraft Group and offers type specific flight

9 Upcoming ECCSL Events Business Opportunities- Partner Searching Diamond Aircraft produces a full range of high quality certified all composite aircraft in state of the art facilities located in Wiener Neustadt, Austria and London, Ontario, Canada, as well as in third party license facilities to serve their respective markets. The company uses proprietary lead-free jet-fuel piston engines, made by Austro Engine GmbH of Austria, a company of the Diamond Aircraft Group and offers type specific flight training simulators. The Diamond Aircraft Industries GmbH is looking for an agent in Sri Lanka who is willing to represent their products. For more details: invest.trade@eccsl.lk Please visit:

10 Web: www. eccsl.lk

India Economic Factsheet

1 India Economic Factsheet (As of February 2015) ECONOMIC PROJECTIONS 2013 2014 2015 (F) GDP (Trillion US$) 1.88 2.04 2.16 Real GDP growth 4.47 4.8 5.6 GDP per capita in PPP 5,412 5,777 6,176 Exports (Billion